SEATTLE—The big sigh of relief heard in the Seattle region occurred when the Boeing Machinists approved their new contract which secured the decision to build the 777X in Everett. “If that had not happened, there would have been a great deal of anxiety regarding reductions in jobs, as Boeing most certainly would have selected an out of state location to build the new jet,” explained Randy Gilliam, SVP of valuation services at Kidder Matthews in a recent report.
The other significant news on the industrial front is Amazon.com in March revealed they will open a 1-million-square-foot distribution center in the Stryker Business Center in Kent. The first quarter results of the region's industrial market are best summed up as “consistent and steady,” says Gilliam.
Employment growth in 2013 totaled 2.8%, well above the US overall, which saw only a 1.6% gain in employment. The projected growth in 2014 is slightly lower at 2.6% (region).
Locally, port business continues to be mixed, explains Gilliam. The Port of Tacoma surpassed the Port of Seattle in container volumes in 2013. Overall, the Port of Tacoma's volumes were up 10.5%, while Seattle's were down 15.5%. Combined, both ports handled 2.8% fewer containers in 2013. Through February 2014, volumes are down at both ports, Seattle being down 16.4% and Tacoma down 5.3%. The result of this continued erosion in container volume has led both ports to agree to collaborate to lift business by sharing information about their respective operations.
Actual investor sales in 2013 totaled 152 sales ($680.4 million) compared to 177 transactions and $907.1 million in 2012. Cap rates were lower in 2013, averaging 6.16% compared to 6.77% in 2012. Through the latter part of March, sales activity has slowed down with 28 transactions totaling $69.2 million and an average cap rate of 6.84%. “There have been no sales of properties exceeding $10 million,” says Gilliam. The most notable sale is Kirkland 118 Commerce Center selling for $9.9 million.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
